THE GENERALLY ACCEPTED
AUDITING STANDARDS
Standardcysettingcyorganizationscy-cyanswer--AuditingcyStandardcyBoardcy(ASB)
PubliccyCompanycyAccountingcyOversightcyBoardcy(PCAOB)
SecuritiescyandcyExchangecyCommissioncy(SEC)
FinancialcyAccountingcyStandardscyBoardcy(FASB)
ASBcy(AuditingcyStandardscyBoard)cy-cyanswer--ASBcyiscyacysub-
boardcyofcythecyAICPAcythatcywritescythecyauditingcystandardscythatcyarecyapplicablecytocyau
ditscynotcyrequiredcytocyadherecytocythecyPCAOBcystandards.cyItscymissioncyiscytocydevelopcy
andcycommunicatecycomprehensivecyperformance,cyreportingcyandcyqualitycycontrolcysta
ndardscyandcypracticecyguidancecytocyenablecyauditorscyofcynonissuerscytocyprovidecyhighcy
quality,cyobjectivecyauditcyandcyattestationcyservicescyatcyacyreasonablecycostcyandcyincythec
ybestcyinterestscyofcythecyprofessioncyandcythecybeneficiariescyofcythosecyservices.cyThesecy
arecycalledcyStatementscyoncyAuditingcyStandards.
PCAOBcy(PubliccyCompanycyAccountingcyOversightcyBoard)cy-cyanswer--
ThecyPCAOBcywascyestablishedcybycyCongresscytocyoverseecythecyauditscyofcypubliccycom
paniescyincyordercytocyprotectcythecyinterestscyofcyinvestorscyandcyfurthercythecypubliccyintere
stcyincythecypreparationcyofcyinformative,cyaccurate,cyandcyindependentcyauditcyreports.cyInc
yparticular,cythecyPCAOBcydevelopscyauditingcystandardscyspecificallycyforcypubliccycompa
nies.cyThecycreationcyofcythecyPCAOBcywascytriggeredcybycythecybankruptciescyandcyallege
dcyauditcyfailurescyatcysuchcycompaniescyascyEnroncyandcyWorldCom.
SECcy(SecuritiescyandcyExchangecyCommission)cy-cyanswer--
ThecySECcyiscythecyregulatorcyofcypubliccycompanies.cyThecySECcyhascystatutorycyauthority
cytocyestablishcyfinancialcyaccountingcyandcyreportingcystandardscyforcypubliclycyheldcycom
paniescyundercythecySecuritiescyExchangecyActcyofcy1934.cyThroughoutcyitscyhistory,cyhow
ever,cythecyCommission'scypolicycyhascybeencytocyrelycyoncythecyprivatecysectorcyforcythiscyfu
nctioncytocythecyextentcythatcythecyprivatecysectorcydemonstratescyabilitycytocyfulfillcythecyres
ponsibilitycyincythecypubliccyinterest.
FASBcy(FinancialcyAccountingcyStandardscyBoard)cy-cyanswer--
Sincecy1973,cythecyFASBcyhascybeencythecydesignatedcyorganizationcyforcyestablishingcyst
andardscyofcyfinancialcyaccountingcythatcygoverncythecypreparationcyofcyfinancialcyreportscy
bycynongovernmentalcyentities.
GenerallycyAcceptedcyAuditingcyStandardscy(GAAS)cy-cyanswer--
Standardscythatcyidentifycynecessarycyqualificationscyandcycharacteristicscyofcyauditorscya
ndcyguidecythecyconductcyofcythecyauditcyexamination
ThecypurposecyofcyGAAScyiscytocyachievecythecyfollowingcyobjectivescyofcyancyauditcyexamin
ationcy
AUDITING STANDARDS
Standardcysettingcyorganizationscy-cyanswer--AuditingcyStandardcyBoardcy(ASB)
PubliccyCompanycyAccountingcyOversightcyBoardcy(PCAOB)
SecuritiescyandcyExchangecyCommissioncy(SEC)
FinancialcyAccountingcyStandardscyBoardcy(FASB)
ASBcy(AuditingcyStandardscyBoard)cy-cyanswer--ASBcyiscyacysub-
boardcyofcythecyAICPAcythatcywritescythecyauditingcystandardscythatcyarecyapplicablecytocyau
ditscynotcyrequiredcytocyadherecytocythecyPCAOBcystandards.cyItscymissioncyiscytocydevelopcy
andcycommunicatecycomprehensivecyperformance,cyreportingcyandcyqualitycycontrolcysta
ndardscyandcypracticecyguidancecytocyenablecyauditorscyofcynonissuerscytocyprovidecyhighcy
quality,cyobjectivecyauditcyandcyattestationcyservicescyatcyacyreasonablecycostcyandcyincythec
ybestcyinterestscyofcythecyprofessioncyandcythecybeneficiariescyofcythosecyservices.cyThesecy
arecycalledcyStatementscyoncyAuditingcyStandards.
PCAOBcy(PubliccyCompanycyAccountingcyOversightcyBoard)cy-cyanswer--
ThecyPCAOBcywascyestablishedcybycyCongresscytocyoverseecythecyauditscyofcypubliccycom
paniescyincyordercytocyprotectcythecyinterestscyofcyinvestorscyandcyfurthercythecypubliccyintere
stcyincythecypreparationcyofcyinformative,cyaccurate,cyandcyindependentcyauditcyreports.cyInc
yparticular,cythecyPCAOBcydevelopscyauditingcystandardscyspecificallycyforcypubliccycompa
nies.cyThecycreationcyofcythecyPCAOBcywascytriggeredcybycythecybankruptciescyandcyallege
dcyauditcyfailurescyatcysuchcycompaniescyascyEnroncyandcyWorldCom.
SECcy(SecuritiescyandcyExchangecyCommission)cy-cyanswer--
ThecySECcyiscythecyregulatorcyofcypubliccycompanies.cyThecySECcyhascystatutorycyauthority
cytocyestablishcyfinancialcyaccountingcyandcyreportingcystandardscyforcypubliclycyheldcycom
paniescyundercythecySecuritiescyExchangecyActcyofcy1934.cyThroughoutcyitscyhistory,cyhow
ever,cythecyCommission'scypolicycyhascybeencytocyrelycyoncythecyprivatecysectorcyforcythiscyfu
nctioncytocythecyextentcythatcythecyprivatecysectorcydemonstratescyabilitycytocyfulfillcythecyres
ponsibilitycyincythecypubliccyinterest.
FASBcy(FinancialcyAccountingcyStandardscyBoard)cy-cyanswer--
Sincecy1973,cythecyFASBcyhascybeencythecydesignatedcyorganizationcyforcyestablishingcyst
andardscyofcyfinancialcyaccountingcythatcygoverncythecypreparationcyofcyfinancialcyreportscy
bycynongovernmentalcyentities.
GenerallycyAcceptedcyAuditingcyStandardscy(GAAS)cy-cyanswer--
Standardscythatcyidentifycynecessarycyqualificationscyandcycharacteristicscyofcyauditorscya
ndcyguidecythecyconductcyofcythecyauditcyexamination
ThecypurposecyofcyGAAScyiscytocyachievecythecyfollowingcyobjectivescyofcyancyauditcyexamin
ationcy
